I mean I guess there is potentially some grey area here, but personally I wouldn’t risk it.
Here’s some info I found BSA/AML Compliance For Bitcoin ATM Operators: Here's What You Need To Know | BitAML
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I think the same. DEX functionality is the only thing that people can legally get away with without major regulatory headaches and probably immense investment. Running an unlicensed CEX carries a huge risk to get locked away in most countries.
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Yes! Something like this!
Regarding the developers funded from the grin fund, they are busy with critical technical features to keep entire chain running. This is more of a community work. I explained example protocol few posts before, the only component required to make it work are multi-signatures which are supported by grin and anyone capable of building a wallet and a P2P network could build such an exchange.
Our goal here is discuss it, show interest, show its relevant and hopefully there will be people willing investing their time into it. I am interested as well!
Good point! I think the legal issues are still there, just they fall on the individual users on the service instead of the service provider.
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I’m really interested in this however take a look at the verification process of LocalBitcoins: https://blog.localbitcoins.com/tier-levels-explained-for-beginners-386eda68d6ad
I want to stress that LocalBitcoins is still a centralized platform (based in Finland) for the facilitation of P2P transactions and as such requires KYC.
A community member would have to start or use a current business registered in their country and take in and protect user information in order to verify GRIN sellers. I’ve had a reputable business in the US since 2016 and as much as I’d love to use an open source script like GitHub - openclassify/openclassify: OpenClassify is modular and most advanced open source classified platform build with Laravel 8 & PHP 7.3+ Supported to create a p2p grin exchange right this instant, I’d probably still have to do KYC like LocalBitcoins does. Something comes to mind though, like services that will do the KYC for you: https://www.namecheap.com/id-validation/ – I haven’t fully explored this option but perhaps this would help offset the KYC falling on the company or website.
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Note 3 :
Can Bitcoin have a layer-2?
No. It lacks the programming primitives and the state plumbing necessary to create sophisticated L1 contracts to manage disputes and/or verify validity proofs 3. Of course you will hear claims (~02:35) that you can use so and so Bitcoin sidechain “without giving up control of your coins”, but that’s simply false advertising4.“What about muh Lightening Network?” Lightening is L2 only in theory. In practice, normal users will mostly certainly trust a third party to keep watch (see discussion above on state channels), which means Lightening is not an L2 in practice. Most people certainly do not have the time and/or skill to spin up a lambda function on AWS (with fail-safe backup) to keep watching their money on L1.
Rollups are the only layer-2 scaling solution with the assurance that (a) you can’t get robbed while you’re asleep, and (b) no one can prevent you exiting what you are entitled to, because the physical funds and exit mechanisms are under the control of L1 Ethereum chain.
Maybe not a good choice in terms of security?
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@Roelsmajor thank you for sharing link about L2, for a while I’m looking for resources to learn about it!
Yes, in case of localbitcoins it is centrally managed, however in case of Bisq it is not, you just install the app and that’s it! Offers of makers and takers would be broadcasted via P2P network, communication as well and signed using slatepack keys.
Thank you for the links, could you tell us how OpenClassify could achieve P2P grin exchange network? It is not clear from the README description.
If you really would be willing to start a p2p exchange in US that is managed by a central authority please feel free to DM me, I would offer to help.
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I was under the impression you were looking for something like LocalBitcoins which is simply a platform (not open source) which allows user registration, listing offers (like a classifieds listing) and messaging to complete p2p bitcoin transactions.
This is almost the same thing as Craigslist, GunBroker or any other marketplace app which allows users to message each other and complete transactions. I only chose OpenClassify since it was an opensource classifieds software which fit the bill.
Also, if there is some interest I’ll be happy to bring the project online with any help offered, but I leave it up to the community of course. I’ve always wanted to add value to this project but struggled to figure out what I could do for it. I’m available on Keybase or DM tomorrow 
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Sorry I think I accidentally made it more confusing than it needs to be, let me clarify
- It is like LocalBitcoins as funds go directly between users. The exchange is not storing any value, is an intermediary only as the platform provider.
- It is not like LocalBitcoins as there would be no centrally managed database or servers. Everything would be run by the community using trustless solutions.
The requirement (1) is absolutely necessary, however requirement (2) can be relaxed, especially at the beginning.
I understand what you mean now. Yes in terms of that you are correct, it is very similar to such marketplace solutions. It would however require some plugin that manages the wallet and is sufficiently sophisticated to create a multi-signature escrow transaction.
I’m really glad to see people interested in this. Having a legal identity capable of starting something like that is a huge advantage, even if all the necessary tools (especially multi-signature transaction support in the wallets) are not yet there, this is something essential to have.
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Yes exactly we need something like this.
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